Muyuan Foods (002714) 国信证券·2024-11-03 12:53Investment Rating - The investment rating for the company is "Outperform the Market" [3][4][10] Core Views - The company reported a significant turnaround in profitability, with a net profit of 9.652 billion yuan in Q3 2024, representing a year-on-year increase of 930.2% and a quarter-on-quarter increase of 200.85% [4][10] - The company plans to distribute a cash dividend of 8.31 yuan per 10 shares, totaling 4.505 billion yuan, which accounts for 40.06% of the net profit for the first nine months of 2024 [4][10] - The company aims to reduce its breeding costs to 13 yuan/kg by the end of 2024, with the average cost in Q3 2024 being close to 13.7 yuan/kg [4][10] - The company's balance sheet is steadily improving, with a debt-to-asset ratio decreasing to 58.38% by the end of Q3 2024 [4][10] - The company is positioned as a leading player in the domestic pig breeding industry, with a focus on cash flow generation and higher dividend returns compared to the industry [4][10] Financial Performance Summary - For the first three quarters of 2024, the company achieved a total net profit of 10.481 billion yuan, marking a return to profitability compared to the previous year [4][10] - The company sold a total of 17.755 million pigs in Q3 2024, a year-on-year increase of 6% [4][10] - The projected net profits for 2024-2026 are 15.26 billion yuan, 25.182 billion yuan, and 22.872 billion yuan, respectively, with corresponding earnings per share of 2.79 yuan, 4.61 yuan, and 4.18 yuan [4][10]